CIMB Group Holdings Bhd(Oct 31, RM5.03)Maintain buy with an unchanged target price of RM5.40: CIMB Group Holdings Bhd’s 92.5%-owned Indonesian subsidiary, PT Bank CIMB Niaga Tbk (Niaga) reported an improvement in net profit by 16% quarter-on-quarter (q-o-q) to 760 billion rupiah, (RM244.5 million) in the third quarter of financial year 2016 (3QFY16). 9MFY16 operating income saw an improvement of +8.4% to11.1 trillion rupiah underpinned by higher net interest income (+4.3% y-o-y) and non-interest income (+29% y-o-y). Stronger net operating income was contributed by higher treasury income and improvement in capital market business. On corporate loans, growth was modest with focus continuing to be on shorter working capital facilities. We expect Niaga’s loan growth to remain below the industry rate ahead due to its conservative strategy.

Source: The Edge Markets November 01, 2016 02:13 UTC